7 Reasons Why You’re Still Broke
Suss out the cash traps you’ve fallen into and, more importantly, how to escape them.
1 You Don’t Direct Deposit Your Earnings
“Ask your employer to pay five to 10 per cent of your salary into another account to remove temptation,” advises Nicole Cannon, financial expert and director of Pink Finance. That way, you won’t notice it’s gone and will soon have a nice plump pile of savings.
2 You blame your friends for making you broke
Trying to keep up with your friends’ champagne lifestyle when you’re on a budget will cripple your finances. Compromise by suggesting budget-friendly outings instead of expensive ones. “Catch up with friends over lunch or coffee at a local cafe or have a night in,” Cannon says.
3 You’re Easily Suckered In
With department stores and online outlets offering special deals 24/7, it can be hard to sort the bargains from the blowouts-in-disguise. Avoid getting sucked in by researching whether you’re actually saving in the long run. “Some women seek out bargains, knowing they don’t really need what they’re buying. Ask yourself – do I want this or do I need it? Think about what else you could be doing with the money,” Janine Cox, financial expert for Wealth Within.
4 You Spend On “Average” Rather Than “Awesome”
Instead of saving for a statement piece for your wardrobe or a relaxing holiday, you’re a sucker for cheap, seasonal buys. Purchasing throwaway items might tick the short-term satisfaction box but it isn’t nearly as rewarding as saving up and spending your cash on something special. “Think of quality clothing and holidays as investments,” explains Cannon. “Holidays give you memories to last a lifetime and good clothes sell you.”
5 You’re not smart at paying bills
It can be difficult juggling debt, repayments, and credit card bills while trying to stay afloat financially. Cox recommends organising a billing system so you don’t get overwhelmed. “Keep your bills together and order them according to the due date. Review them every week and find out whether you can extend the due date without penalty to buy yourself more time,” she says.
6 You’re selling yourself short
Unfortunately, excelling at your job doesn’t guarantee a pay rise. If you believe your salary should reflect your abilities, arrange a time to speak to your boss about a possible pay increase. “Do your research and prepare some reasons to justify the cost to your employer. Get a feel for what your time is worth by ringing associations related to your field to know whether the rise you’re asking for is realistic,” Cox encourages. If you don’t ask, you won’t get!
7 You can’t stop at buying just one thing
It’s easy to think, “What’s one more purchase?” when you’re buying up big. But small amounts can easily add up, leaving you with zero until pay day. “To prevent a spending binge, have a set amount in your account the next time you go shopping and transfer the rest into an online account so you can’t access it if you get carried away,” suggests Cannon.